DEPARTMENT OF NATURAL RESOURCESAND CONSERVATION

STEVE BULLOCK, GOVERNOR 1525 ELEVENTH AVENUE

-SIATE

OF MONTAIJADIRECTOR'S OFFICE: (406) 444'2074FAX: (406) 444-2684

Pc) BOX 201501

HELENA, MONTANA 59620-1501

RECEIVEDSEp o g Zlti

.,SENl=,iil&:,

TO:

FROM:

DATE:

SUBJEGT:

Amy SassanoOffite of Budget and Program Plapning

DeAnna Noel, Budget AnalYst qi'Financial Services Office, DNRC I

August 26,2015

Environmental Contingency Account (021 07)

prease find attached a financiar report for the Environmentar contingency Account as of June

30,2O15.Theunr","*uOcashbalanceintheaccountis$636'738'

lncluded is the cash Flow Report for FY15, and lcumu.laJ'rye summary of activity from FY1989

thru Fy201S. To tr.iiii"t" i"rOing nmu"it, in" rinanti"l Report shows detailfor l0years

(Fy2OoO to FY2O15j. in" electronic dil'*'tains-alltne dita from FY1989 to 2015' All

information can be ;;";; InJ piint"O by "un-hiding" columns and rows'

Please let me know if you need further information' I can be reached at extension 5701'

.:

Enclosures

Gerry MurPhY, OBPPStep-hen Forrest' LFD

Rav Beck, DNRCPairicia Sihiltz, DNRC

Anna Miller, DNRC

DIBECTOR'SOFFICE

(4061 444-2074

CONSERVATION & RESOURCE

DIVISION(406) 444-6657

OIL & CASDIVISION

(405) 444-6575

TRUST LAND MANAGEMENTDIVISION

(4061 444'2074

FlNAtlClA REPOBT6,80f2015

'ln FYt 1 , a prla-ysr sBcf qr ls mde to the FYt 0 allGilm. No lntmt depcit ln FYI I .

'lnFYl4,RlTlnrsstEarnlng!@ldnotluflll 1S3&2m,mCA Earnlngawepreraledandabqrt14%ls3ilEnnoded. ECAr@'vd$151,120ratherthan$'175,000.

2007 Blennium 2(XX, Biennlum 2011 Blennium 201 m

:NVIRONMENTAL CONTINGENCY ACCOUNT(q2 1 07) FYO6 FYOT FYOS FYlO FY11 FY12 FY.I3 FY14 FYl 5a A13 145 3 SA 665

17qpq914,538

175,00010,870

_12!,0002,@

(121,!?!2,329

28,r36(2'29o

,TAIE LN{A' EXPENOIruflES :WPT NATUNAL RESOURCES E CONSEAVA,i|oN@-Oeadmans B6in Supply-No. Cheyenne Tribe Contracl Water'-Derby Fire ErGion Projst-Cardwell Bridge Remwd'-Brrckton Water Main Bepair-Vandalia Cmal Glasgow lrrigatim District-Superior Soil Remwal and Replacement-Holter Cul Om Repairs-Fire Rehab Reseeding-Eurasian watermilloil Sites Treatment-Delphia-Melstone Canal Water Users Line Repair

- Fire Resloration costs-Public Lands

1oo,oo07.600

2!q@?q8eo10,000

16,3715,000

32,9:t6

17,C24

14,142

12,500

$29,749$1 6,778

$10.000

-NE MOnIana SIOrm naysr&x-Aeration ol Bean Lake

60,ooo

-Harlem Equrty cGop Petroleum Helease-Town of Nshua Sewer-Beart@th Hcpital Day Care Soil Cleanup

'Alberlon Haadous W6te Drum RemdalssoBg2

4,336-Lewistown HaNlat-Regional Haardous Materials Response Teams

Reseryed tor Regnl Ha Mat Response Teams #121 10602

uu)tuENtS;-Accrual lor Lewistown HaMat-Accrual ,or Lower Missouri River Dredging Projrct-Accrual Superior Soil Bemwd and Replacement

Ln*(30,m0

(1llL2

Reseryed tor Alberion Haardous Wste Drum Bemwal (DEO)

Reseryed lor Fire Rehab Reseeding (DNRC)

Reseryed lor Eursian watermilfoil Sites TreatmentReseryed for Fire Restoration ccts-Public Lmds (DNRC)

Reseryed ls Missile Pond Dam Controlled Breach (DNRC)

Reseryed lor Japanese Beetle Conlingency(Oept. Ag)

Reseryed lor Regnl Ha Mat Response Teams *121 10602

443

4,ni6$25,00C$45,2s1 $35,251

: _$2!.987$4,863

$53,21 3

ullv9llu^r Ev Errgrrrt| wdaar ErerlqPer 7t1-1101, MCA, Max. Unobllgated Cash Bel

SuFTotal

lntere.l Allmailon not to Ereed 3175.m

a @a,Jor I ow,ow a 0llra tt I osrJta$ 7s0,000

$ 2(N,688

3 175 m

Q OI{rtrt3 } itoo,9oo o oJorooo I oJo,uro a9q ,rgw 490 0r, o0$ 7t0,m0

$ 113,262

a rra *t

ENVIRONMENTAL CONTINGENCY GRANT PROGRAM

Funded by interest income from the Resource lndemnity Trust Fund, the EnvironmentalContingency Grant program makes available funds for projects that exhibit emergency orimminent need in the areas of water development, renewable resources, mineraldevelopment and hazardous wastes or materials. RIT lnterest deposited in this account isdefined in [.4CA 75-1-'1 10'1 as: At the beginning of each biennium $'175,000 is allocated tothis account, if the unobligated cash balance is less than $750,000. lf $'175,000 allocationwould increase the unobligated cash balance to greater than $750,000, the allocation isadjusted by the Department of Revenue to an amount less than or equal to the differencebetween the unobligated cash balanceand $750,000, but nottoexceed $175,000. lnterestearning from funds in the account accrue to the general fund.

As of June 30, 2015 (fiscal year 20'15), the Environmental Contingency Account (02'107)has an unobligated cash balance of $636,738. The governor controls the account andauthorizes use of these funds.

Following is a list of all authorization and expenditures since the inception of this program.

Authorizations Prior To This Report Period:

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1. Februarv 9. 1987 DHES was authorized an amount not to exceed $30,000 to plugan abandoned oil (Simero #1) located in the town of Cut Bank, [.4ontana. Theflowing well exhibited significant concentrations of hydrogen sulfide gas that is bothtoxic and explosive at high concentrations. Although the 1987 Montana Legislatureappropriated $'19,951 forthe plugging using Reclamation and Development GrantsProgram (RDGP) funds, such funds were not available until after June 30, 1987.Consequently, Environmental Contingency Account funds were expended. Thecontingency account was later reimbursed with RDGP funds for this expenditure.

April 22. '1987 DHES was authorized an amount not to exceed $7,OOO to plug anabandoned, leaking gas well (Huso Lease No. 4143-44) located in a residential areaof Cut Bank, l\4ontana.

April 27. 1987 DH ES was authorized an additional amount not to exceed $5,OOO forthe Huso Lease No.4143-55 abandoned.

SeptemberlS. 1987 DHES was authorized an amount not to exceed $60,000 toimplement safety and cleanup measure for a gasoline spill originating at a gasolineservice station in Livingston, l\.4ontana. Federal funds were received to cover thecost of cleanup, thus eliminating the need for contingency account funds.

Mav 20. 1988 DSL was authorized an amount no to exceed $5,OOO to backfill acollapsed and abandoned mine shaft located int he abandoned Blaine Schoolplayground in Butte, lvlontana.

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6. Mav 27. 1988 DHES was authorized an amount no to exceed $15,000 to implementsafety and cleanup measures relating to oil lound in ground water within andadjacent to the city oI Cut Bank, Montana.

April 13. 1989 DSL was authorized an amount not to exceed $5,000 to backfill acollapsed and abandoned mine shaft (Rising Star Mine) located within Walkerville,lvlontana.

Julv l0. 1989 DSL was authorized an amount not exceed $5,000 to backfill twocollapsed and abandoned mine shafts (Allie Brown and Angela Mines) locatedwithin a Walkerville, Montana residential area. Of this amount, $4,692 was used topay the contractor.

December 6. 1989 and Januarv 10. 1990 The Board of Oil and Gas Conservationwas authorized an amount not to exceed $25,000 to plug an abandoned oilexploration well located in Powder River County, Montana. Several bids werereceived by plugging contractors, allexceeding the amount authorized. On January10, 1990, the Board was authorized an additional $25,000 to plug this well. Thisincrease rellected the bids received. Of the total amount ol $50,000authorized lor this project, $43,940 was used to pay the contractor.

June 19. 1990 Superior School District #3 was authorized the amount of $2'1,928 toinvestigate and cleanup a leaking fuel oil underground storage tank at Superior HighSchool in lvlineral County, Montana. The leak presented an imminent threat to thearea groundwater and the environment.

Auqust 5. 1993 Park County was granted $20,000 to installa temporary pipeline tobypass a leaking sewer line in the Yellowstone River. g19,2OO was expended onthis proiect.

September 2. 1994 The Department of Fish, Wildlile & parks was authorized tospend $7,245 to purchase stock water tanks, install them, and deliver water to thetanks on two ranches in the upper Big Hole basin in exchange for closure of threediversions lrom the Big Hole River.

September 30. 1994 The Montana Bureau o, Mines and Geology was authorized$262,186 to provide interim funding lor the Groundwater Assessment program toallow for continued monitoring of existing well sites and allow expansion of themonitoring system.

Mav 22. 1995 Lockwood Water Users Association and DHES was authorized anamount not to exceed $11,000 lor cleanup of the benzene and solventcontamination of the Lockwood Water Supply. $10,998.34 was expended on thisproject.

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June 20. 1995 The Dept. Ol Fish, wildlile and Parks was authorized an amount notto exceed $55,000 to respond to the Whirling disease emergency. $50,498.15 wasexpended in fiscal year 1995 and $4,501 was expended in fiscal year 1996.

Julv 10. 1996 The Dept. Ol Natural Resources and Conservation was authorized$30,000 Ior the construction of a temporary earthfill diversion around an invertedsiphon on the West Side Canalthat washed out in earlyJune near Dillon, Montana.

Julv 28. 1996 The Dept. Of Natural Besources and Conservation was authorized$110,000Ior design and exploratory construction to address an emergencycausedby the failed condition ol the East Fork of Rock Creek Dam.

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18. Auqust 8. 1996 The Dept. of Environmental Quality was authorized $35,000 tocover a portion oI the cost of reclamation work which involves restoration of sitesecurity, decontamination of the mill buildings, revegetation ol easily eroded areas,and disposal oI waste water in the impoundment through land application at thePony Gold Mill.

19.. Mav 6. 1997 The Dept. Of Natural Besources & Conservation was authorized anamount no to exceed $25,000 for repair of a dike at the City of Cut Bank wastewatertreat lagoon. Complete dike failure would have released over 150 acre{eet ofuntreated water into Cut Bank Creek, and would have caused downstream propertydamage from flooding and erosion. This grant was in coniunction to a $'105,000loan for the same project.

20. June 10. 1998 The Department oI Environmental Quality was authorized an amountnot to exceed $'lOO,OOO for the Streamside Tailing Operable Unit, a facility utilized toreclamate the flood plain and channel of Silver Bow Creek west of Butte The

stream is devoid of aquatic life and contains highly elevated concentrations olmobilized heavy metals. These monies serve as 10olo state match monies to an

EPA grant for $900,000. Of the total amount authorized, $17,371.74 has been

spent. The balance of these funds($82,628.26) will not be spent since thesettlement of the lawsuit with Arco will provide funding to complete this pOect

21. June 15. 1998 The Department of EnvironmentalOuality was authorized an amount

of $9O,OOO in order to complete the destruction of cyanide compounds at the Pony

Millsite Tailings lmpoundment Beclamation project. Continued leakage of cyanide-contaminated waste poses an additional threat to persons, property, and theenvironment. These monies will be used in conjunction with $10,000 of U.SDepartment of lnterior Surface Mining funds, $100,000 of EPA carryoverfunds, and

$50,000 of CEBCA funds.

22. September 2. 1998 The Department of Natural Resources and Conservation was

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authorized an amount of $30,600 to cover the costs of emergency repair of theCove lrrigation Company Ditch. These monies will be used to pay ,or emergencyconcrete repairs and emergency site access costs. A portion of the ditch's concretewall collapsed, rendering the ditch unusable. The ditch provides water to 148irrigators farming 8,762 acres.

June 25. 1999 The Department of Natural Resources and Conservation wasauthorized $36,000 for exploratory drilling and testing to find an alternative to thecontaminated well that serves the public water supply for the Town oI Opheim. Thecontaminated well is no longer in use, resulting in the availability of only oneapproved wellfor Opheim's public water supply.Auoust 13. 1999 The Department of Environmental Quality (DEQ) wasauthorized $63,000 for emergency repair of a sewer main which posed a signilicanthealth risk to the residents oI Nashua. The grant will be used lor the installation offour new manholes, 390 Ieet of sewer pipe, and the surveying and engineeringcosts for the project.

Januarv 4. 2000 The Department of Livestock was authorized $60,000 for thepurpose of incinerating 80 exposed or infected game larm elk. The elk wereexposed or inlected with Chronic Wasting Disease(CwD) on the Kesler Game Farmoutside oI Philipsburg.

Februarv2.2000 The Department oI Environmental Quality was authorized$100,000 for cleanup at the Equity Co-Op bulk plant in Harlem. Groundwatercontamination resulted from leaking gasoline and diesel tanks. Funds will be usedto recover the petroleum product and remove petroleum-contaminated soil that isacting as a source of groundwater pollution.

27. September 27. 2000 The Department of Fish, Wildlite, and Parks wasauthorized $5,600 lor hvo projects. The first was reimbursement ot $3,600 to theParrot Ditch Company for assisting in providing water flow to the Jefferson River soit did not go dry. The second project for $2,000 purchases and places tlvo windmill-type apparatus into Bynum Reservoir for aeration through the winter. Due topresent low water levels in the reservoir, winter fishery survival is very questionable

This will help present winterkill of fish.

28. Januarv8.2OOl The Department of Environmental Ouality was authorized

$25,500 for cleanup at the Beartooth Hospital and Health Centering Facility in RedLodge. Surface contamination was present in the soil including arsenic, cadmium,chromium, and lead. The contamination resulted from leaks lrom automobiles as aused car dealership once operated there. Contamination levels were a concernbecause of the day care center that would be operated at this site Funds will beused to dig up to three feet oI contaminated soil, dispose oI it, and replace withclean soil.

,o March 2. 2001 The Department ot Fish, Wildlife, and Parks was authorized$40,000 for game damage compensation as a result oI the two majorstorms that hitNortheast l\ilontana in November 2000. This compensation will cover landownelslosses to haystacks due to deer as a result ol these storms.

October 29,2001 The Department of Public Health and Human Services wasauthorized up to $25,000 for disposal of hazardous materials stored in the CogswellBuilding on the Capitol Complex. The cleanup, removal and disposal proposal hasgone out to bid and the DPHHS plan is to contract with a specialized hazardoursmaterials disposal company.

November 2. 2001 The Dept. of Fish, Wildlife & Parks was authorized upto $2,000on expenses for enhanced aeration of Bean Lake due to the continuing drought.The prairie polhole lake, a popular recreational fishery along the Rocky MountainFront, is in danger of losing a mature fishery many years in the making withoutadditional oxygenation.

June 18.2004 The Department of Nalural Flesources and Conservation wasauthorized up to $100,000 for necessary investigations into the repair of the St.Mary Diversion Facilities. Local matching funds of an equal amount are required asa condition ror use of these funds. The $100,000 in Environmental ContingencyFunds should focus on analyses and to prepare a report prior to next Legislativesession as to the critical steps necessary to move fonward on the replacement ofthis important inrrastructure.

April 7.2005 The Department of Natural Resources and Conservation wasauthorized up to $30,000 for the partial cost of purchase of a small, shallow draft,hydraulic dredge for the Lower Missouri River Dredging Project. This will allowirrigators to keep pumping facilities in operation without the use of heavy earth-moving equipment, thereby providing for the protection of property and ofvegetation, fish, wildlife, and other resources during imminent emergency low-watersituations.

Mav 25.2005 The Department of lvlilitary Affairs was authorized $4,020.94 forreimbursement under the Emergency Hazmat Plan. This reimbursement allowedthe Great Falls Hazmat Unit to assist the Lewistown Hazmat Unit in response to aincident involving a truck-trailer on the truck bypass in Lewistown.

Seotember 26.2005 The Department of Natural Resources and Conservation wasauthorized up to $'100,000Ior use on repairs to the Deadmans Basin Supply Canal.The canal was heavily damaged in a storm on June 27,2005. Repairs must be

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made to allow lor average flows through the canal by the spring of 2006.

Auoust 22. 2006 The Department ot Natural Besources and Conservation wasauthorized up to $30,000 to purchase water from the Northern Cheyenne Tribe tomitigate some of the damage that will occur due to record lows of the SoutheastMontana rivers.

Januarv 4.2007 The Department of Natural Resources and Conservation wasauthorized up to $200,000 erosion control in Stillwater and Sweet Grass Countiesdue to exposed soil and loss ol vegetation as a result oI past fires.

March 6.2007 The Department oI Natural Resources and Conservation wasauthorized up to $3O,OOO for removal ot the abandoned and failed railroad bridgeprior to its collapse into the Jefferson River and to prevent flood damage to roads, a

state-owned fishing access site.

March 15. 2OO7 The Department of Natural Resources and Conservation was

authorized up to $1O,OOO ,or costs associated with replacement oI a section oIbroken water main servicing the Town oI Brockton.

September 5. 2OO7 The Department of Natural Resources and Conservation wasaumorizeO up to $24,OOO for emergency water main replacement for the Town ofBrockton.

September l8.2OO7 The Department o, Natural Besources and Conservation was

-authorized

up to $23,ooo to compensate the Glasgow lrrigation District lor costs

incurred in making emergency repairs to the Vandalia Main Canal.

Seotember 18. 2OO7 The Department oI Environmental Quality was authorized up to

$2500 to fund the emergency removal and disposal of hazardous material near

Alberton.

September 25. 2OO7 The Department of l/ilitary Aftairs was authorized up to-$?O1rl5 fot reirnbursement for Regional HazMat Team responses Costs were

incurred in the KalispellTeam's response to a spill Hydrochloric Acid; Powder River

County Sheriff's request tor assistance in identifying matter fount at a restarea;andresponse to fish kill in Fleshman Creek in the City of Livingston.

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44. 4$4j!-4,-20o8 The Department of Military Affairs was authorized up to $16,877 38

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reimbursement for Regional HazMat Team responses Costs were incurred in

the Kalispell's Team's relponse to lncident Number 07072503, Meridan Road

Gasoline Spill.

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October 1.2008 The Department ol Fish, Wildlife and Parks was authorized up to$60,000 for elk brucellosis testing. Brucellosis sample kits were distributed tohunters and landowners along with education materials about the testing programprior to the start of the 2008 big game season. The Funds were approved topurchase materials lor brucellosis sample kits; hire wildlife technicians to assemblethe kits and distribute them to hunters and landowners; and to conduct laboratorytesting oI the blood samples.

Januarv 22.2009 The Department oI Natural Resources and Conservation wasauthorized up to $63,450 to compensate the Town ot Superior lor costs to removearsenic and lead contaminated soils associated with construction of a drinking watersystem.

Mav 22.2009 The Department of Natural Resources and Conservation wasauthorized up to $5,000 to compensate the Big Creek Lakes Reservoir Associationfor costs to construct a temporary dam that will allow them to till Big Creek Lake tofull capacity providing late-summer irrigation water for 81 irrigators in the BitterrootValley near Victor. A permanent dam will be constructed in the fall of 2009.

November 9.2009 The Department of Natural Resources and Conservation wasauthorized up to $22,000 from the Environmental Contingency Account to assist infire rehabilitation aerial seeding for the lndian Trail and Dunn Mountain Fires.

Auoust 27. 2010 The Department ol Natural Resources and Conservation wasauthorized up to $40,000 from the Environmental Contingency Account to pay forthe costs to treat known Eurasian water milfoil (Ewlil) sites and any additional sitesthat may be discovered. Treatment will include the use of chemicals, dredging,hand pulling and mats where appropriate.

lulv 1. 2011 The Department of Justice was authorized $'144,555 from theEnvironmental Contingency Account to pay for the costs associated with theYellowstone Exxon Pipeline oil spillapproved in the Governois executive order EO-9-'1 '1. Costs incurred by Department of Justice were fully reimbursed by ExxonMobile Oil Company in 2O'12. No ,iscal impact to the ECA account.

September 28. 2011 The Department of Natural Resources and Conservation wasauthorized up to $50,000 trom the Environmental Contingency Account to help theDelphia-Melstone Canal Water Users Association (WUA) pay for damages of themain water canal on the Lower Musselshell River east of Roundup resulting fromthe spring 2011 tlooding.

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July 29, 2012 Aulhorization up to $75,000 lor restoration costs relative to thedamages to public land caused by lires and fire response activity. EnvironmentalContingency Account willassist in addressing the most pressing priorities related tothe 2012 Montana Fires.

February 5, 2013 $16,778.80 was authorized to cover a portion of costs required toconduct a controlled breach of the Missile Pond Dam, '1 .4 miles northeast of JudithGap on DNBC Trust Land property. This dam is structurally unsound and in dangerof lailure.

April9,2013 No more than $758.67 was authorized for Military Affairsto reimbursethe City o, Bozeman, lor a Bozeman Hazlvlat Team incident. The Hazmal Teamwas called to the Ruby Valley Hospital in Sheridan Montana.

April 10,2013 No more than $4,863.21 was authorized lor Military Affairs toreimburse the City of Great Falls for the Great Falls Hazlvlat Team incident. TheHazMat Team was called by the Browning Fire Department for a white powderincident at tribal headquarters.

May 17,2013 Expenditure oI no more than $30,000 from the EnvironmentalContingency Account to pay for costs by the Department of Agricultureassociated with the infestation of the Japanese beetle. "We have confirmed thepresence of Japanese beetle in Kalispell and Columbia Falls. Critical work forthis year includes completion of an assessment and implementation ofemergency response measures for all introduction sites (nurseries andsurrounding areas). Survey and trapping work needs to be initiated in mid-Juneand will need to continue through August or early September. Eradicationmeasures will be necessary lor all siles that have confirmed presence ofJapanese beetle."

October 29, 2013 No more than $4.Z9AZ was authorized for the Dept. of lililitaryAtfairs, Disaster and Emergency Services Division to pay costs incurred by theBozeman HazMat Team. The Team responded to an abandoned chemical drum inthe Granite Creek drainage on September 13, 2013.

February 14,2014 Costs for inspecting, surveying, monitoring and treating sites inorder to prevent or address beetle introduction. Japanese beetles are an invasivespecies and pose a serious threat to agriculture, residential and related industries.No more than $5s,lgqq from the EnvironmentalContingency Account is authorized.

Authorizations for this Report Period:

'1. November 24,2014; Cover costs of gllEgzz incurred by the city of Billingswhentwo jars ol an unknown substance were found in a locker at Hardin High SchoolSeptember 18, 2014 and the Billings HazMat team was requested to respond tothe scene.

2. Januaty 17,2015;Costs incurred up to $59919@ from the Bridger Pipeline OilSpillinto the Yellowstone Biver that occurred January 17, 2015. Bridger PipelineCompany has been identilied as the responsible party and it is anticipated thatthey will reimburse the State for all costs.

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